© Archyde.com. Screens displaying data for the German DAX index at the Frankfurt Stock Exchange on Tuesday. Photograph: Archyde.com.
(Archyde.com) – European shares rebounded from initial gains on Tuesday, extending a sell-off for the sixth straight session on concerns regarding aggressive US interest rate hikes and a possible recession.
The European index ended the trading session down 1.3 percent following falling 2.4 percent on Monday to its lowest level in more than three months.
Healthcare and industrial stocks led the decliners in Europe, while banking stocks rebounded 1.1 percent.
Oil and gas stocks also rose as crude prices rose amid concerns regarding tight global supplies.
The benchmark Standard & Poor’s 500 index on Wall Street confirmed on Monday that it is in a bear market following plunging more than 20 percent since hitting its record closing level on growing concerns that tight monetary policy by the Federal Reserve might push the world’s largest economy into a recession.
Markets are awaiting the Federal Reserve’s decision on Wednesday and many are expecting a significant increase in interest rates of 75 basis points in the wake of the strong inflation figures released last week.
(Prepared by Wagdy Al-Alfi for the Arabic Bulletin)
